FSMD vs. OUSM

Last updated Jul 14, 2026

FSMD (Fidelity Small-Mid Multifactor ETF) and OUSM (OShares U.S. Small-Cap Quality Dividend ETF) are both Small Cap Blend Equities funds - FSMD tracks the Fidelity Small-Mid Multifactor Index while OUSM tracks the O'Shares US Small-Cap Quality Dividend Index. Both are passively managed. Over the past 5 years, FSMD returned 10.44%/yr vs 8.31%/yr for OUSM. Their correlation of 0.93 suggests significant overlap in exposure. FSMD charges 0.15%/yr vs 0.48%/yr for OUSM.

Performance

FSMD vs. OUSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Small-Mid Multifactor ETF (FSMD) and OShares U.S. Small-Cap Quality Dividend ETF (OUSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSMD achieves a 16.35% return, which is significantly higher than OUSM's 9.57% return.

FSMD

• 1D: -1.18%
• 1M: -1.05%
• 6M: 12.13%
• YTD: 16.35%
• 1Y: 22.98%
• 3Y*: 16.17%
• 5Y*: 10.44%
• 10Y*: —

OUSM

• 1D: -0.06%
• 1M: 1.22%
• 6M: 6.09%
• YTD: 9.57%
• 1Y: 10.40%
• 3Y*: 10.57%
• 5Y*: 8.31%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FSMD vs. OUSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FSMD Fidelity Small-Mid Multifactor ETF	16.35%	8.70%	15.18%	17.37%	-11.15%	26.40%	8.94%	8.81%
OUSM OShares U.S. Small-Cap Quality Dividend ETF	9.57%	2.17%	13.45%	18.82%	-7.89%	21.45%	7.64%	11.60%

Correlation

The correlation between FSMD and OUSM is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (All Time) Calculated using the full available price history since Feb 28, 2019	0.93

The correlation between FSMD and OUSM has been stable across timeframes, ranging from 0.84 to 0.93 - a consistent structural relationship.

FSMD vs. OUSM - Sectors Allocation Comparison

Sectors	FSMD	OUSM
Technology	20.5%	14.5%
Industrials	20.1%	22.2%
Financial Services	14.8%	20.4%
Healthcare	11.7%	9.9%
Consumer Cyclical	10.6%	19.5%
Real Estate	6.2%	-
Energy	4.1%	0.3%
Basic Materials	4.0%	1.3%
Consumer Defensive	3.1%	4.6%
Communication Services	2.9%	3.5%
Utilities	2.1%	3.8%

Return for Risk

FSMD vs. OUSM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FSMD

FSMD Risk / Return Rank: 59
FSMD Sharpe Ratio Rank: 53
FSMD Sortino Ratio Rank: 57
FSMD Omega Ratio Rank: 50
FSMD Calmar Ratio Rank: 69
FSMD Martin Ratio Rank: 67

OUSM

OUSM Risk / Return Rank: 28
OUSM Sharpe Ratio Rank: 28
OUSM Sortino Ratio Rank: 28
OUSM Omega Ratio Rank: 25
OUSM Calmar Ratio Rank: 28
OUSM Martin Ratio Rank: 30

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FSMD vs. OUSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Small-Mid Multifactor ETF (FSMD) and OShares U.S. Small-Cap Quality Dividend ETF (OUSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FSMD	OUSM	Difference
Sharpe ratio: Return per unit of total volatility	1.45	0.80	+0.65
Sortino ratio: Return per unit of downside risk	2.16	1.28	+0.88
Omega ratio: Gain probability vs. loss probability	1.26	1.14	+0.11
Calmar ratio: Return relative to maximum drawdown	2.74	1.13	+1.60
Martin ratio: Return relative to average drawdown	9.67	3.34	+6.34

FSMD vs. OUSM - Sharpe Ratio Comparison

The current FSMD Sharpe Ratio is 1.45, which is higher than the OUSM Sharpe Ratio of 0.80. The chart below compares the historical Sharpe Ratios of FSMD and OUSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FSMD vs. OUSM - Drawdown Comparison

The maximum FSMD drawdown since its inception was -40.67%, roughly equal to the maximum OUSM drawdown of -39.84%. Use the drawdown chart below to compare losses from any high point for FSMD and OUSM.

Drawdown Indicators

	FSMD	OUSM	Difference
Max Drawdown Largest peak-to-trough decline	-40.67%	-39.84%	-0.83%
Max Drawdown (1Y) Largest decline over 1 year	-8.44%	-9.21%	+0.77%
Max Drawdown (3Y) Largest decline over 3 years	-22.16%	-19.44%	-2.72%
Max Drawdown (5Y) Largest decline over 5 years	-22.16%	-19.44%	-2.72%
Current Drawdown Current decline from peak	-3.54%	-0.59%	-2.95%
Average Drawdown Average peak-to-trough decline	-5.93%	-5.17%	-0.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.38%	3.13%	-0.75%

Volatility

FSMD vs. OUSM - Volatility Comparison

Fidelity Small-Mid Multifactor ETF (FSMD) has a higher volatility of 5.39% compared to OShares U.S. Small-Cap Quality Dividend ETF (OUSM) at 3.33%. This indicates that FSMD's price experiences larger fluctuations and is considered to be riskier than OUSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSMD	OUSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.39%	3.33%	+2.06%
Volatility (6M) Calculated over the trailing 6-month period	12.30%	9.28%	+3.02%
Volatility (1Y) Calculated over the trailing 1-year period	15.90%	13.08%	+2.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.57%	16.27%	+2.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.38%	18.87%	+2.51%

FSMD vs. OUSM - Expense Ratio Comparison

FSMD has a 0.15% expense ratio, which is lower than OUSM's 0.48% expense ratio.

Dividends

FSMD vs. OUSM - Dividend Comparison

FSMD's dividend yield for the trailing twelve months is around 1.25%, less than OUSM's 2.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FSMD Fidelity Small-Mid Multifactor ETF	1.25%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%	0.00%	0.00%
OUSM OShares U.S. Small-Cap Quality Dividend ETF	2.01%	2.09%	1.62%	1.64%	1.98%	1.55%	2.02%	1.99%	2.63%	2.17%

Frequently Asked Questions

Can I hold both FSMD and OUSM in my portfolio?

FSMD and OUSM have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSMD or OUSM?

FSMD has higher volatility (5.39%) compared to OUSM (3.33%). In terms of maximum drawdown, FSMD dropped -40.67% vs OUSM's -39.84%.

Which ETF is better, FSMD or OUSM?

On 5-year performance, FSMD leads with 10.44% vs 8.31% for OUSM. On fees, FSMD is cheaper at 0.15% per year. On volatility, OUSM has been the lower-risk option at 3.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSMD or OUSM?

Over the 5-year period, FSMD has performed better with a 10.44% return vs 8.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSMD or OUSM?

FSMD is cheaper with a 0.15% expense ratio, compared with 0.48% for OUSM.

Which ETF pays a higher dividend yield, FSMD or OUSM?

OUSM has the higher dividend yield at 2.01%, compared with 1.25% for FSMD.

What is the main difference between FSMD and OUSM?

FSMD tracks Fidelity Small-Mid Multifactor Index, while OUSM tracks O'Shares US Small-Cap Quality Dividend Index. They also come from different issuers: Fidelity and O'Shares Investments. Their fees differ too: 0.15% for FSMD and 0.48% for OUSM.

Which has better risk-adjusted returns?

FSMD currently has the higher Sharpe Ratio (1.45 vs 0.80), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.